Market Performance
Shares of Hero MotoCorp gained as much as 2 percent to trade at Rs 4,580 in early morning trade on August 7, 2025. The stock rose 1.9 percent to Rs 4,561 by 9:45 am, reflecting positive investor sentiment after the company's Q1 financial results. Hero MotoCorp shares have posted an 18 percent gain over the last three months.
Q1 Financial Highlights
- Net profit for Q1 FY26 was flat at Rs 1,126 crore, marginally up from Rs 1,123 crore in the same quarter last year. This came ahead of consensus estimates pegged around Rs 1,054 crore.
- Revenue declined 5.5 percent year-on-year to Rs 9,579 crore from Rs 10,144 crore in Q1 FY25.
- Operating profit (EBITDA) stood at Rs 1,382 crore, down 5.3 percent compared to Rs 1,460 crore in the year-ago period.
- EBITDA margin remained steady at 14.4 percent, showing resilience despite top-line pressure.
- Total two-wheeler sales were approximately 1.37 million units in the quarter.
Company Details and Business Outlook
Hero MotoCorp's Chief Financial Officer, Vivek Anand, noted that profitability was supported by strong demand for entry-level and deluxe motorcycles as well as the 125cc scooter segment. The electric mobility business under the VIDA brand is gaining momentum, and international operations outperformed the broader two-wheeler market. The company expects retail demand to stay robust in coming quarters, driven by festive season tailwinds and new product launches.
Summary
Hero MotoCorp reported a mixed Q1 with flat profits and a modest revenue decline. Despite the slight dip in sales, the company maintained stable margins and robust demand in key segments. Positive investor sentiment boosted the share price, which showed significant gains in recent months. The business outlook appears strong as new launches and festive demand are expected to sustain growth.
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